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Robinhood DRIP: Dividend Reinvestment Program

2020 Robinhood dividend reinvestment plan fee and setup, commission, fractional shares. Robinhood DRIP program enrollment for stocks, mutual funds, ETFs, and ADRs. Is it free?

Robinhood DRIP Plan

Right now Robinhood does not offer DRIP - dividend reinvestment plan. You can use another $0-commission broker - Firstrade - that not only offers DRIP but also mutual funds, bonds and excellent website trading.

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Robinhood Promotion

Get one free $3-$100 value stock when you open an account.

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Robinhood Advantages

  • Commission free trades on U.S. listed securities
  • Easy-to-use mobile application
  • Real time market data
  • Smart notifications sent directly to smartphone
  • Fast execution on trades
  • Easy to set up account
  • Straightforward pricing and fees
  • App is optimized for the Apple watch

Robinhood Disadvantages

  • No dividend re-investment plan (DRIP) available at this time
  • No desktop trading platform
  • Limited stocks and ETF's research capability on mobile app
  • Does not offer IRA, Health Savings Accounts, or 401k accounts
  • No brick and mortar stores
  • No mutual funds or bonds

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Read detailed Review of Robinhood Trading

Robinhood is an online brokerage company that offers commission-free trading on their pretty basic mobile app. Unlike traditional online brokerages, Robinhood is mostly a mobile-based brokerage. The firm has no brick and mortar stores. The app is simple and well designed, but currently only offers brokerage accounts. The firm does not offer IRA, HSA, or 401K accounts.

Is Robinhood App Good for Beginners?

Investors who are learning the ropes in the world of securities will find a low amount of material on the Robinhood website. There are almost no articles to be found there on a wide range of issues, from trading in options to the tax implications of investing. Other firms have much more material on their websites. E*Trade, for example, offers videos on financial topics, which Robinhood does not offer. Fidelity has far more material than Robinhood, including self-guided courses and infographics.

Robinhood's website was recently revamped, which has made it more user-friendly. However, unlike many other brokers there is no handy trade ticket at the bottom of the browser that makes buying and selling easier. There is no trading platform is available at Robinhood. The broker does not offer any paper trading services, which would be perfect for new traders. TD Ameritrade does have paper trading on their platforms.

Robinhood falls short by not offering any mutual funds or bonds, which new traders could buy and sell. Almost all other firms do provide these securities, including Schwab and Vanguard.

Novices might prefer 24/7 customer service over the phone, which Robinhood doesn't offer. There are no retail locations, which would be beneficial to clients who want in-person service. By and large, Robinhood doesn't do well here.

Is Robinhood a Good Choice for Active Traders and Shorting Stocks?

Traders who buy and sell frequently will benefit from Robinhood's low $0 commission. Most other brokers have a higher rate, including Etrade ($0) and Ally Invest ($0). Robinhood Financial also introduced options trading at no commission. Most firms charge 65ยข per option contract.


Robinhood attracts investors for its low transaction fees. Along with Firstrade it is one of the best priced brokerage houses in the United States.